a. An ordinary share selling at a current market price of Rs. 120, and paying a current dividend (DO) of Rs. 9 per share, which is expected to grow at a rate of 8%. Compute after-tax cost of capital assuming 40% tax rate. [5 Marks] b. A 10-year 8% Rs. 1,000 bond is issued at Rs. 950, and will be redeemed at Rs. 1,050. Compute after-tax cost of capital assuming 40% tax rate.